C.B.N Urge Nigerians to Shun Unlicensed Financial Operators

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The Central Bank of Nigeria (CBN) has warned Nigerians to avoid unlicensed financial businesses that offer enticing investment returns.

Many Nigerians have been duped by companies that promise up to 100% returns on investments to unwary investors. The companies, which are mainly online and have no real offices, vanish after collecting large sums of money from hundreds of people.

Relevant authorities have arrested and convicted some of the offenders of such businesses, including those dubbed “wonder banks.”

Nigerians should avoid interacting with such companies, according to the CBN’s Financial Services Regulation Coordinating Committee (FSRCC).

The CBN stated in a statement published on its website that unlicensed financial operators use spectacular returns on investments as bait to entice and swindle naïve members of the public.

C.B.N Urge Nigerians to Shun Unlicensed Financial Operators (News Central TV)

It also expressed concern about the growing operations of Illegal Financial Operators (IFOs), claiming that they pose a serious threat to public trust and the financial stability of Nigeria.

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“In order to combat the problem of IFOs in Nigeria, the FSRCC is issuing the following advisory:

“The general public is advised to refrain from dealing with unlicensed or illegal financial operators, who lure and defraud unsuspecting members of the public by offering extra-ordinary returns on investments as bait.

“Members of the public are advised to visit the websites of the Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC) and other relevant member agencies of the FSRCC to verify the registration and license status of such companies and schemes before investing in them.

“You are also advised to report any individual or entities suspected to be involved in such nefarious activities to the law enforcement agencies.”

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It promised that financial regulatory bodies will continue to do thorough due diligence before registering or licensing any operator under their jurisdiction.

“In addition, before finalizing any registration/licensing application, Agencies will seek confirmation from appropriate supervisory authorities,” the statement stated.

It urged member agencies to run frequent public awareness efforts about the dangers presented by illegitimate financial operators’ activity.

It further advised the general public to contact the Central Bank of Nigeria’s Director of Financial Policy and Regulation and/or the Securities and Exchange Commission’s Executive Commissioner, Legal and Enforcement, with any further questions.

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